Good Use: Mobile Solutions in Extension. 16 March Fritz Brugger Head Agriculture Support Services
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1 Putting Cell Phones to Good Use: Mobile Solutions in Extension 16 March 2012 Fritz Brugger Head Agriculture Support Services 1
2 2
3 Mobile apps in smallholder agriculture 1. The challenge: Reducing the yield gap Farming becomes more time critical and information intense Increasing smallholder productivity and incomes Farming as a business 2. The expectations regarding mobile technology are flying high: Making agricultural markets more efficient and transparent Linking poor farmers to urban, regional and global markets Improving services and governance for the rural poor Promoting and including smallholders in agricultural innovation Helping farmers manage risks Improving land and natural resource management Helping poor farmers participate in higher value agriculture Supporting the emergence of a more diverse rural economy 3
4 Mobile phones and rural poverty Enthusiasts: accessibility is the main challenge in harnessing the full potential. (e.g. Silarszky et al., 2008) Mobile cellular subscriptions per 100 inhabitants Skeptics: technologies are not autonomous forces 100 or independent variables causing change 80 in every domain of human life (e.g. Leye, 2009) importance of socioeconomic, cultural, political, and institutional factors Pragmatists: ICT is not an end in itself but an important enabler (e.g. Fourati, 2009) 0 Appropriate policies and careful coordination and integration in other development strategies for ICT to cause an overall positive impact ITU, 2011 China Indonesia 4
5 Opportunities: Mobile enabled solutions for agriculture Extension Market access Supply chain coordination Financial i services 5
6 Opportunities: Mobile enabled solutions for agriculture Extension Information delivery Helpline Precision agric. Market access Price discovery Trade facilitation Supply chain coordination Traceability Supplier mgt Distributer ib t mgt 6 Financial i services Mobile payment py Micro credit Micro insurance
7 Helpline as extension service Jigyasha 7676, Bangladesh: > /month Kisan Call Center India mkilimo, Kenya 7 7
8 Push-approach to mobile extension Main target: 55mio IFFCO members 5mio SIM, ~1+mio active users Database Specialist Input companies 5x/d (free) 12 communities Needs assessment (Surveys, Helpline Feedback, Expert assessment) Universities Research Quality control More Information (paid) Similar: *1677 Farmer Information Highway (Thailand) Nokia Life Tools (India, China, Indonesia, Nigeria) IKSL Experts Farmers Text Center (Philippines) IKSL, Helpline (24/7)
9 9 Nokia, 2011 Push-approach to mobile extension
10 precision farming approach mkrishi (pilot stage) Tata Consultancy Services, 2007 Customized advisory services based on data gathered from weather station (soil humidity, weather characteristics) at village level Voice-functions. Similar: CommonSenseNet (research) esagu (pilot) Agrocom (grape farmers) Community Knowledge Worker (Uganda) 10
11 Push-solutions are relatively simple 11 11
12 Push-solutions are relatively simple 12 12
13 compared to interactive solutions with location-based data 13 13
14 compared to interactive solutions with location-based data But the problem is not technology. There is no shortage of technology. The problems are empty batteries no credit on the phone message that is not relevant, not timely or not action orientedoriented no proper business model etc 14 14
15 Digital Green: peer-to-peer learning Digital Green,
16 Digital Green: peer-to-peer learning Call center Text / Voice messages Interactive tools Digital Green Digital Green,
17 Opportunities: Mobile enabled solutions for agriculture Extension Information platform Helpline Precision agric. Market access Price discovery Trade facilitation Supply chain coordination Traceability Supplier mgt Distributer ib t mgt 17 Financial i services Mobile payment py Micro credit Micro insurance
18 Vast number of market information tools Research shows: Effect on price information is more pronounced in rural areas Indian Council for International Economic Research ICRIER: interviewed RML customers had benefitted in the range of 5 25% of annual income. ReutersMarketLight RML, India News and data on more than 150 crops, markets and weather locations across 12 states of India 300 full-time professionals. Cooperation with State Agricultural Universities for developing crop related technical content 3/6/12 months subscription, about 1 million clients moves towards extension 18
19 Vast number of market information tools Research shows: Effect on price information is more pronounced in rural areas Indian Council for International Economic Research ICRIER: interviewed RML customers had benefitted in the range of 5 25% of annual income. ReutersMarketLight RML, India 150+ crops, markets, weather locations 12 states 300 full-time professionals. Cooperation with State Agricultural Universities for crop related technical content 3/6/12 months subscription, about 1 million clients Esoko (Afrika) Benin, Burkina Faso, Cameroon, Ghana, Ivory Coast, Madagascar, Mali, Togo Franchising system for roll-out to new countries moves towards trading platform moves towards extension 19
20 Opportunities: Mobile enabled solutions for agriculture Extension Information platform Helpline Precision agric. Market access Price discovery Trade facilitation Supply chain coordination Traceability Supplier mgt Distributer ib t mgt 20 Financial i services Mobile payment py Micro credit Micro insurance
21 Examples supply chain coordination Smart logistics: collect data on the location, speed and route of food ddistribution ib ti trucks, improve fleet management Mobile management of distribution networks: keep records of sales of agricultural inputs like seeds, fertilizer and chemicals, agriculture insurance 21
22 Mobile technology allows Kilimo Salama to monitor trainings T101 22
23 and our trainers to perform better 120% estions Percenta age of correct qu 100% 80% 60% 40% 93% 87% 100% 100% 100% 100% 100% 100% 100% 100% 93% 93% 93% 87% 87% 87% 87% 87% 80% 73% 73% 20% 0% T109 T121 T550 T548 T124 T120 T549 Trainers T101 Joseph Karoki Overall Observations 27 Sep-2 Sep 3rd -10th Sep 11-18th Sep Most farmers did not understand on how payout is calculated 23 Recommendation Trainer to be advised on the best approach to explain to farmers on the topic of payout in a simple way for the farmers to understand 23
24 and to offer improved products to farmers Input credit bundle Goodfarm management Index based insurance 24
25 Examples supply chain coordination Smart logistics: collect data on the location, speed and route of food ddistribution ib ti trucks, improve fleet management Mobile management of distribution networks: keep records of sales of agricultural inputs like seeds, fertilizer and chemicals, agriculture insurance Mobile management of supplier networks: agriculturalfield agents record dataon farm conditions and expected yield Traceability and tracking system: field firm fork 25
26 Farmforce Strategic value proposition Current state A mobile platform to support the integration of smallholder farmers into formal agro value chains Reduce transaction cost for contract farming, compliance withfoodstandards standards, traceabilityfromthefield the field andimprove agronomy at scale Link more farmers to markets Under development and field testing in India and Kenya 26 Outlook Platform goes live Q3 2012
27 27
28 Virtual Farm concept Field 2 (0.9a) Field 3 (0.4 a) Field 1 (0.5 a) Farmer Silas Kaberia Field 5 (0.2 a) Field 4 (0.8 a) Field 6 (0.5 a) 28
29 Planting campaign concept Farmer Mwiti Snow peas Field 1 (0.6 a) Farmer Sammy Snow peas Field 3 (0.75 a) Farmer Silas Kaberia Snow peas planting campaign to meet required quantity Farmer acreage Silas 0.5 Sammy 0.75 Mwiti 0.6 Jane 0.55 John 0.6 Total 30acre 3.0 Farmer Jane Snow peas Field 4 (0.55 a) 29 Snow peas Field 6 (0.5 a) Snow peas Field 5 (0.6 a) Farmer John
30 Virtual Farm concept Field 2 (0.9a) Field 1 (0.5 a) Farmer Silas Kaberia Field 4 (0.8 a) Field 5 (0.2 a) Field 6 (0.5 a) Field 3 (0.4 a) Cropping cycle Snow Peas on field 6 Planting 15. Oct 2011 Fertilizer 30. Oct 2011 TSP, 40 kg/acre Spraying 15. Nov 2011 Ridomil against blight, 1.2 kg/a Spraying 05. Dec 2011 Ridomil against blight, 1.5 kg/a 1 st harvest 20. Dec kg 2 nd harvest 23. Dec kg Cropping cycle French beans on field 6 Planting 15. Jan 2012 Fertilizer 25. Jan 2012 Spraying 30
31 Farmforce: effective Management of large numbers of smallholder Managing farmer large supplier farmer networks supplier networks Improve agronomy at scale Farm risk assessment Crop calendar Planting campaigns Input loan management activities Crop growth Documentation of monitoring Manage range of inputs field activities to prove allowed Yield tracking and PHI compliance monitoring Plant clinic Monitoring farmer s AWA-disease alerts productivity 31
32 32 Farmforce: effective Management along the value chain
33 Innovation and Maturity: where are we today? From generic messages to customized advice Integration of technologies and information sources towards content rich location based data Intermediaries dealing with farmers continue to play an important role Telephone and Radio remain relevant Supply chain management tools will play an important role Business models are emerging g Vital Wave, 33
34 Innovation and Maturity: where are we today? From generic messages to customized advice Integration of technologies and information sources towards content rich location based data From SMS broadcasting to interactive communication Intermediaries dealing with farmers continue to play an important role Telephone and Radio remain relevant Supply chain management tools will play an important role Business models are emerging Vital Wave, 34
35 35
36 36
37 Trends in magriculture Content: From generic messages to customized advice Increase relevance for farmers advice creation on based on location specific information Technology: From simple to complex applications Follows from the first trend Communication: From broadcasting messages to interactive communication Intermediaries continue to play an important role (CKW, mkrishi) Multiple services are added/ combined Telephone and Radio remain relevant Business models: still many IT-driven (research) projects and applications in pilot stage. But: also few really commercial applications (RML, IKSL, NLT) 37 Telecoms as drivers where mass audience can be reached or operators can use their existing core business know-how
38 WEF,
39 Agenda 1. Mobile technologies in agriculture: expectations are flying high 2. Mobile apps in the agriculture landscape 3. What makes for successful business models in offering mobile based service propositions? 1. FarmForce The Syngenta Foundation mobile platform 39
40 Cantor, The funding problem
41 Challenges and success factors Concept Service / information identification Business model Technology No lack of tech, but: empty pybatteries Realistic technology Users Literacy (general and technical) Education level impacts productive use of mobiles Sustainability Upfront investment and continuous improvement Generation of revenue stream Long term content availability 41
42 Linking farmers to markets Benefits: create income and grow potential at the bottom of the pyramid promote professional farming practices communicate to end consumers 42 42
43 43 Jawhar, India
44 Laikipia, Kenya Sourcing from smallholder farmers Barriers: high number of small producers access to inputs, credit, technology high transaction cost for buyers: manual & paper based processes (mistakes time) manual & paper based processes (mistakes, time) high TA support levels required / difficult quality monitoring delayed or lacking management information 44 44
45 Vital Wave, 45
46 Complexity versus replicability Source: GTZ 2008, The Participatory Web New Potentials of ICT in Rural Areas 46
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